Bumi Resources & EMP merger in late July
It's a chaotic situation at PT Bumi Resources Tbk, a company with almost no significant asset after it divested two major assets, PT Kaltim Prima Coal and PT Arutmin Indonesia, two of the largests coal producer in the country.
After series of plans announced, including the US$3 billion coal-to-liquid project with South Africa's SASOL or development of some oil fields, Bumi Resources announced today the plan to merge with oil and gas producer PT Energi Mega Persada (EMP). Both Bumi and EMP are closely associated with Bakrie Family. The merger will be conducted through share swap mechanism.
The merger is scheduled for late July this year, despite negative covenant at EMP in which capital market authorities forbid the company of conducting any corporate action in one year since its rights issue in September 2005.
Surprisingly Bumi claimed that capital market authorities had endorsed the plan. I really don't understand, what is the definition of a corporate action, and whether the merger is not such kind, and why the share swap mechanism would make any difference to authorities?
It's remain unclear also on what Bumi will do with the US$3.2 billion proceed from the divestment of KPC and Arutmin. I believe the US$3bn CTL project is still far away and it's impossible to spend all the money there.
Bumi had announced it's US$3 million acquisition of PT Pendopo Energi, a coal mining concession owned by Barito Group. But many more to come, I guess. Fasten your seatbelt!
After series of plans announced, including the US$3 billion coal-to-liquid project with South Africa's SASOL or development of some oil fields, Bumi Resources announced today the plan to merge with oil and gas producer PT Energi Mega Persada (EMP). Both Bumi and EMP are closely associated with Bakrie Family. The merger will be conducted through share swap mechanism.
The merger is scheduled for late July this year, despite negative covenant at EMP in which capital market authorities forbid the company of conducting any corporate action in one year since its rights issue in September 2005.
Surprisingly Bumi claimed that capital market authorities had endorsed the plan. I really don't understand, what is the definition of a corporate action, and whether the merger is not such kind, and why the share swap mechanism would make any difference to authorities?
It's remain unclear also on what Bumi will do with the US$3.2 billion proceed from the divestment of KPC and Arutmin. I believe the US$3bn CTL project is still far away and it's impossible to spend all the money there.
Bumi had announced it's US$3 million acquisition of PT Pendopo Energi, a coal mining concession owned by Barito Group. But many more to come, I guess. Fasten your seatbelt!
Labels: Bakrie, Bumi Resources, COAL, Energi Mega Persada
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posted by yosef at 11:32 PM
1 Comments:
I thing coal to liquid is rediculous plan of Bumi Resources. If They want to leap its tentacles to coal to liquid, sol why did they sell two 'diamons'????
Are they sick?
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